IAG is to acquire a 20% strategic interest Chinese general insurer Bohai Property Insurance Pty Ltd for about $100 million. 

CEO Mike Wilkins announced the deal this afternoon, saying the acquisition is an important step in IAG’s strategy to boost its Asian footprint.

“Bohai Insurance is an attractive partner and provides an exciting opportunity for us to meet our long-held ambition of entering China’s general insurance market,” he said.

“Once the partnership is complete, IAG will have a foothold in the two fastest-growing economies in Asia and most populous countries in the world – China and India.

“Together with our established businesses in Malaysia and Thailand, this puts the group’s Asia division well on track to meet its target of contributing 10% of IAG’s gross written premium by 2016, on a proportional basis.”

Bohai Insurance is mainly a motor insurer, selling direct through about 265 provincial and city-based branches and a network of agents.

Its revenue has grown steadily since it was established in 2005, with annualised gross written premium currently in excess of $200 million.